Mark A. Ernst, the former chairman and chief executive of H&R Block, will receive a $2.55 million cash severance payment.
Not a bad way to begin a new year.
Ernst, you may recall, resigned back in November. If that doesn’t ring a bell, you can read about it in this previous blog, Block going back to the basics. That’s when the tax prep giant decided, with a little nudging from some dissident shareholders, that it needed to refocus its efforts on its core business of filling out folks’ 1040s.
So Ernst, the guy who led H&R Block’s diversification into other financial products, became odd man out.
The best job: Of course, at the top level of corporate America, it looks like the best job is losing that job.
It doesn’t seem to matter whether an executive leaves his post voluntarily or at the suggestion of the company’s governing body. The end result is, in most cases, quite lucrative.
Another quick flashback. Embattled Home Depot CEO Robert Nardelli left that job under pressure and subsequently got a hefty wad of cash and extras to tide him over until he took Chrysler‘s top job.
That’s another executive perk, getting hired at another corporate leadership post even if your resume is a bit besmirched by previous problems elsewhere. But that’s a blog for another time. Back to outrageous payouts to get guys out the door in the first place.
In addition to the $2.55 million, H&R Block announced that Ernst will also receive continuation of some insurance benefits, the vesting of 762,925 stock options, the lifting of restrictions on 10,000 restricted shares and the payout of about 16,500 performance shares.
Hmmm. "performance" shares. Wasn’t the issue of performance a main reason he left?
Like I said, a very nice way to start 2008.
